Chapter 11 Hiring Training Evaluating Employees Learning Objectives

Chapter 11 Hiring, Training & Evaluating Employees

Learning Objectives Explain human resource planning by firms. Differentiate among the types of compensation that firms offer to employees. Describe the skills of employees that firms develop. Explain how performance of employees can be evaluated.

The Key to a Firm’s Performance Human Resources Hiring Selecting the best people for the job. Training Developing the necessary skills of employees to do the job. Evaluation Establishing a formal process to recognize (and ultimately reward) those employees who performed well, while offering suggested improvements for other employees. Form a team of employees with the right background, training and guidance. Firm's Value

Human Resource Planning The act of planning to satisfy a firm’s needs for employment. Three tasks: Forecasting staffing needs. Job analysis. Recruiting.

Human Resource Planning Forecasting Staffing Needs Job Analysis Recruitment Selection

Forecasting Staffing Needs Ä Determine the right number of qualified people and where they are needed. Three events which require forecasting: Ö Firm expansion. Ö Retirement. Ö Temporary increase in production.

Job Analysis ÄThe analysis used to determine the tasks and the necessary credentials for a particular position. The results of Job Analysis are: • Job specification Identifies the necessary skills, traits or attributes for successful performance in a particular job. • Job description States tasks and responsibilities of the job position.

Recruitment Ä Involves seeking and attracting individuals from which a qualified candidate(s) can be selected. Internal vs external recruiting: • Internal Recruit people within the firm. • External Recruit people outside the firm.

Recruitment Screening Process • Screening applicants 1. Assess each application to screen out unqualified applicants. 2. Interview applicants to assess personality characteristics, punctuality, communication skills, and attitude. 3. Contact applicants’ references. 4. Use employment tests to assess candidates’ abilities. 5. Make the hiring decision.

Steps for Screening Job Applicants Exhibit 11. 3

Employment Testing ÄOne of the most controversial areas in Human Resource Management. General Categories: Aptitude Business Online: Test Samples Psychomotor Job Knowledge Proficiency Interest Psychological Polygraph Drug What’s next?

Six Important Laws Providing Equal Opportunity Equal Pay Act of 1963. Civil Rights Act of 1964. Age Discrimination in Employment Act of 1967. Employee Polygraph Protection Act of 1988. Americans with Disabilities Act of 1990. Civil Rights Act of 1991.

Seven Methods of Compensation É Salaries and wages É Stock options É Commissions É Bonuses É Profit sharing É Employee benefits É Perquisites Which one is right for your firm?

Skills Development • Technical • Decision Making • Customer Service • Safety • Human Relations

Employee Evaluations Should ÄBe segmented by the relevant criteria for each job position. • • • Provide feedback. Provide direction. Indicate strengths and weaknesses. Determine a raise or promotion. Consider objective versus subjective criteria.

Direct Measures of Performance Exhibit 11. 8

Development of Evaluation Fairness Ä Why: demonstrate overall fairness to employees and satisfies legal guidelines. Communicate job responsibilities. Employee evaluation Inform employee of deficiencies. Use consistency among employees.